In 2008, the current account balance was -706 billion and the capital account balance was +711 billion.Therefore, the official settlements account balance was ________ and the balance of all payments accounts was ________.

Question

Quizplus · Accepted Answer

The official settlements account balance is the sum of the current account balance and the capital account balance. Therefore, the official settlements account balance in 2008 was -706 + 711 = +5 billion. The balance of all payments accounts is always zero, because every transaction has two sides, a debit and a credit.

In 2008, the Current Account Balance Was -706 Billion and the Capital